Key economic data and last earnings season results to end month

CPI and a speech by Reserve Bank governor-designate Michele Bullock will be watched closely this week, along with the last of earnings season.

Earnings season is set to wrap up with a bang as the last of the financial year reports are lodged alongside key economic data this week, including July’s headline inflation rate and retail trade ­figures.

Market watchers will also be keeping a close eye on a speech on Tuesday night by Reserve Bank governor-elect Michelle Bullock at the Australian National University.

While the title of the speech is Central Banks and Climate Change, policy wonks will be watching for any signs on the interest rate outlook.

Fortescue Metals is due to report its annual results on Monday, alongside lithium and iron ore exporter Mineral Resources.

Troubled casino business Star Entertainment will be the most closely watched release on Tuesday, with building products company Adbri – seen as one of the key indicators of the health of Australia’s construction sector – also due out that day.

Would-be competitors with the majors report on Wednesday, with Bank of Queensland out, along with airline Rex.

Harvey Norman reports on Thursday.

But the week will also be watched closely for economic data releases, with July retail sales out on Monday and Consumer Price Index figures due on Wednesday, alongside dwelling approvals.

The private capital investment data will be closely watched, with construction activity figures due on Wednesday, and private capital spending and capex on August 31.

The local stockmarket is expected to open modestly higher, after gains in the US market on Friday. The Dow Jones rose 0.6 per cent to 34,365 points and the S&P 500 was up 29.4 points at 4405.71.

AMP chief economist Shane Oliver said last week’s earnings results continued a number of key themes: cost pressures remain a challenge, although there are signs of some easing; home buyers are keeping up payments, though rate hikes have not yet fully flowed through; and the corporate outlook is cautious.

“Partly reflecting the cautious outlook guidance consensus earnings expectations have been

revised down since the reporting season started,” Dr Oliver said.

“The consensus is now for a 1.5 per cent rise in earnings for 2022-23 and for a 5.7 per cent fall in earnings in 2023-24, with both revised down from 2.5 per cent and minus 0.8 per cent respectively at the end of July.

“In Australia, the focus will be once again on inflation with the July monthly CPI indicator likely to rise to 5.5 per cent year-on-year, from 5.4 per cent, reflecting higher electricity and gas prices partly offset by various power bill subsidies and slightly lower petrol prices.”

In a weekend note, Westpac economists said they expect retail trade figures to show a 0.4 per cent gain for July.